Ferguson Foundry Limited Essay Example

Ferguson Foundry Limited Essay CASE ANALYSIS: FERGUSON FOUNDRY LIMITED (FFL) EXECUTIVE SUMMARY Introduction After reviewing the financial statements for the fiscal year ended May 31, 2010, Mark Ferguson, President of Ferguson Foundry Limited’s (FFL), was disappointed with the results. Operating Income was $367,600 below expectation, despite having sold 2,000 wood stove units greater than budgeted. To determine which areas FFL’s actual performance was better or worse than expected, a variance analysis will be conducted. However, it is important to note that variance analysis alone can only emphasize areas that need improvement, and not determine the reason for these discrepancies. A further investigation is warranted once determining the issues outlined through variance analysis. Analysis Qualitative and Quantitative There are many areas within FFL’s production which have been proven to be unfavourable, and where immediate improvement is necessary. Of particular concern is the variable overhead, where an unfavorable variance of $180,600 was discovered (Appendix F). Within this variance, the variable overhead costs, both manufacturing and non-manufacturing of the Deluxe model are what seem to be causing inefficiencies. The Deluxe model accounts for $157,200 of the $180,600U mentioned above. Other Key Areas of Concern Outlined Through Variance Analysis: * Appendix I: Although the selling price of the basic model increased by $25, a $100 reduction in the selling price of the Deluxe model counterbalanced this increase, and negatively affected income. Appendix E: The difference between the budgeted and actual sales mix had an adverse effect on revenues. The Deluxe model had a greater CM/unit of 210, and was budgeted at 55% of the sales mix, however, it only ended up accounting for 40% of the actual sales mix. * Appendix H: The market share of FFL resulted in being less than expected (10% to 9%), in a market which was larger than expected/budgeted (133,333 to 100,000 units). Recommendation and Implementation We recommend a proper rectification of the issues with regards to FFL’s unfavourable variances. We will write a custom essay sample on Ferguson Foundry Limited specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Ferguson Foundry Limited specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Ferguson Foundry Limited specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Firstly, is it of utmost importance to have all the necessary components of management (i. e. supervisors, directors, and managers) on the job and ready to manage. Once FFL has the personnel to solve these significant issues, the following must be corrected, in order: Direct labor inefficiencies and high overhead costs, most importantly. Then, they can â€Å"fine tune† and solve higher than usual selling and administrative expenses and high fixed overhead costs. Further instructions with regards to solving these issues are outlined in Appendix K. However, if FFL is not capable of reorganising the company by itself, external help is necessary to implement specific changes that will improve FFL’s bottom line. REFERENCES Bhimani, Alnoor et al. Management and Cost Accounting. Pearson Education Limited, 2012. Print. APPENDIX A DIRECT MATERIAL VARIANCES Note: F = Favorable and U = Unfavorable APPENDIX B DIRECT MATERIAL VARIANCES CONTINUED *540,000 + 912,000 = 1,452,000 *315,000 + 1,045,000 = 1,360,000 Note: F = Favorable and U = Unfavorable APPENDIX C DIRECT LABOR VARIANCES Note: F = Favorable and U = Unfavorable APPENDIX D DIRECT LABOR VARIANCES CONTINUED Note: F = Favorable and U = Unfavorable APPENDIX E SALES VARIANCES 7200/12000 = 0. 6 4500/10000 = 0. 45 Note: F = Favorable and U = Unfavorable APPENDIX F VARIABLE OVERHEAD VARIANCE *Variable Selling Administrative Expenses are labeled as Non-Manufacturing in this table. Total Variable Overhead for Basic and Deluxe = 27,000U + 18,000F = 9,000U Note: F = Favorable and U = Unfavorable APPENDIX G FIXED OVERHEAD VARIANCE *750,000 ? 115,000 = 6. 217 Note: F = Favorable and U = Unfavorable APPENDIX H MARKET VARIANCES Note: F = Favorable and U = Unfavorable APPENDIX I VARIANCE OVERVIEW Note: F = Favorable and U = Unfavorable Note: F = Favorable and U = Unfavorable APPENDIX J ANALYSIS OF THE UNFAVORABLE VARIANCES Note: F = Favorable and U = Unfavorable Note: $421,300 represents the sum of all unfavorable variances that have brought down the company’s annual earnings. Note: F = Favorable and U = Unfavo rable APPENDIX K RECOMMENDATIONS: REDUCING THE TOTAL UNFAVOURABLE VARIANCE

Free Essays on Antigones Battle

Antigone’s Battle Most people look up to heroes, like athletes, actors, fire fighters, or police men. But in Sopholes’ play Antigone, there were two tragic heroes, Antigone was the tragic heroine. A tragic hero is someone who is not completely good or completely bad, someone who falls from tremendous good and recognizes their tragic flaw. In these three ways Antigone was the tragic heroine. There are many ways Antigone proves she is a good person, such as when she wants to bury her brother, Polyneices,† But Polyneices who fought as bravely and died as miserably†¦Ã¢â‚¬  (693). One way that shows she was not as good as we all thought was when she yelled at her sister Ismene. â€Å"And now you can prove what you are: a true sister, or a traitor to your family† (693). And that is why she is neither good nor bad. Pride brought Antigone down throughout the play. For instance when she accepted her punishment for burying Polyneices, â€Å"I should have praise and honor for what I have done. All these men would praise me† (710). Here is another way, her pride got in her way, she yelled at Ismene, â€Å"Yes save yourself, I shall not envy you. There are those who will praise you. I shall have honor too† (711). Antigone’s pride killed her. By the end of the play, Antigone recognized that her pride got her where she was. She realized it when she was going to her death, and when the chorus said she had a choice. â€Å"You have made your choice your death is the doing of your conscious hand.† (724). She recognized her error at the worst possible time. As you can see Antione has all the qualities of a tragic hero. I think she was the tragic heroine because she did what she believed in, which made her a good person. She did something and did not care what the punishment was, which made her proud. She also did what everyone else wanted to do but they did not have the guts to do it, which made her recognize her error. She loved her brother, ... Free Essays on Antigone's Battle Free Essays on Antigone's Battle Antigone’s Battle Most people look up to heroes, like athletes, actors, fire fighters, or police men. But in Sopholes’ play Antigone, there were two tragic heroes, Antigone was the tragic heroine. A tragic hero is someone who is not completely good or completely bad, someone who falls from tremendous good and recognizes their tragic flaw. In these three ways Antigone was the tragic heroine. There are many ways Antigone proves she is a good person, such as when she wants to bury her brother, Polyneices,† But Polyneices who fought as bravely and died as miserably†¦Ã¢â‚¬  (693). One way that shows she was not as good as we all thought was when she yelled at her sister Ismene. â€Å"And now you can prove what you are: a true sister, or a traitor to your family† (693). And that is why she is neither good nor bad. Pride brought Antigone down throughout the play. For instance when she accepted her punishment for burying Polyneices, â€Å"I should have praise and honor for what I have done. All these men would praise me† (710). Here is another way, her pride got in her way, she yelled at Ismene, â€Å"Yes save yourself, I shall not envy you. There are those who will praise you. I shall have honor too† (711). Antigone’s pride killed her. By the end of the play, Antigone recognized that her pride got her where she was. She realized it when she was going to her death, and when the chorus said she had a choice. â€Å"You have made your choice your death is the doing of your conscious hand.† (724). She recognized her error at the worst possible time. As you can see Antione has all the qualities of a tragic hero. I think she was the tragic heroine because she did what she believed in, which made her a good person. She did something and did not care what the punishment was, which made her proud. She also did what everyone else wanted to do but they did not have the guts to do it, which made her recognize her error. She loved her brother, ...